Investar Holding (ISTR) AI Stock Analysis

• Market Cap: $216.78M
• Dividend Yield: 1.96%
• Average Volume (3M): 34.01K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.04
• Revenue Growth: 6.42%
• EPS Growth: 24.08%
• Country: US
• Employees: 329
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.64
• Shares Outstanding: 9,844,848
• 10 Day Avg. Volume: 68,049
• 30 Day Avg. Volume: 34,005
• PEG Ratio: 1.06
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.04
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 2.26
• 1Y Price Target: $27.00
• Price Target Upside: 22.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $23.00 ▲(4.45%Upside)

Investar Holding demonstrates solid financial performance and technical strength, supported by strategic corporate actions like the merger. While financial stability is generally strong, attention to cash flow trends is necessary. Positive technical momentum and valuation metrics further bolster the stock's attractiveness.

Investar Holding Business Overview & Revenue Model

Company Description

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals and small to medium-sized businesses in South Louisiana. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit cards; and mobile banking services. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate lending, such as second mortgage loans; consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers cash management products, including remote deposit capture, virtual vault, electronic statements, positive pay, ACH origination and wire transfer, investment sweep accounts, and business Internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machine, interactive teller machines, merchant card, and mobile wallet payment services. The company operates through a network of 24 full service branches. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

How the Company Makes Money

Investar Holding generates revenue through the interest collected on loans issued to individuals and businesses, which is a primary source of income. Additionally, the company earns money from non-interest income streams such as service charges on deposit accounts, fees for financial services, and other banking-related fees. Investar Holding also benefits from strategic partnerships and investments that enhance its service offerings and market reach, contributing to its overall financial performance.

Investar Holding Financial Statement Overview

Summary

Investar Holding shows a commendable financial standing with robust revenue growth and solid profitability, particularly reflected in its net profit margin. The balance sheet is strong with zero debt, enhancing financial stability. Cash flow management is efficient, ensuring liquidity and operational flexibility. However, attention should be given to the declining EBIT margin to ensure sustained operational efficiency.

Income Statement

Investar Holding has demonstrated a strong revenue growth trajectory, with a noticeable increase from $83 million in 2023 to $144 million in 2024, indicating a healthy growth rate. The gross profit and net income have also shown positive trends. However, the EBIT margin has significantly decreased from 40.24% in 2022 to 1.79% in 2024, presenting a potential area of concern regarding operational efficiency. The net profit margin improved to 14.08% in 2024, suggesting solid profitability, but the decreasing EBIT margin warrants attention.

Balance Sheet

The company's balance sheet reflects a stable financial structure with no total debt in 2024, significantly reducing leverage risks. The equity has increased to $241 million, enhancing the equity ratio to 8.86% of the total assets, which is a positive sign of financial health. The return on equity remains robust at 8.39%, indicating effective utilization of shareholder funds. However, the equity ratio could be improved further to strengthen financial stability.

Cash Flow

Investar Holding demonstrates strong cash flow management with a significant increase in free cash flow from $25 million in 2023 to $32 million in 2024, signaling healthy cash generation capabilities. The operating cash flow to net income ratio remains favorable at 1.61, suggesting efficient conversion of net income to cash. The free cash flow to net income ratio is also strong at 1.61, indicating effective cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.00M	156.52M	141.06M	123.18M	107.99M	105.93M
Gross Profit	88.89M	85.89M	84.38M	105.47M	73.38M	74.51M
EBITDA	29.04M	27.50M	24.21M	48.78M	14.90M	21.91M
Net Income	21.84M	20.25M	16.68M	35.71M	8.00M	13.89M
Balance Sheet
Total Assets	2.73B	2.72B	2.82B	2.75B	2.51B	2.32B
Cash, Cash Equivalents and Short-Term Investments	389.25M	34.12M	390.20M	445.23M	452.05M	303.78M
Total Debt	96.77M	101.02M	85.08M	439.74M	135.66M	175.00M
Total Liabilities	2.48B	2.48B	2.59B	2.54B	2.27B	2.08B
Stockholders Equity	251.74M	241.30M	226.77M	215.78M	242.60M	243.28M
Cash Flow
Free Cash Flow	11.99M	15.42M	25.18M	41.69M	30.16M	10.16M
Operating Cash Flow	12.60M	15.93M	26.25M	42.75M	33.48M	17.75M
Investing Cash Flow	69.82M	90.06M	-73.49M	-350.99M	53.40M	-148.14M
Financing Cash Flow	-80.74M	-110.08M	38.99M	251.46M	-25.21M	121.07M

Investar Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISTR, the sentiment is Positive. The current price of 22.02 is above the 20-day moving average (MA) of 19.42, above the 50-day MA of 19.17, and above the 200-day MA of 19.52, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 92.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISTR.

Investar Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNA	80 Outperform	$174.54M	7.63	18.94%	―	―	―
ISTR	68 Neutral	$216.78M	10.03	9.12%	1.96%	6.42%	24.08%
Sector *	67 Neutral	$16.89B	11.79	9.73%	3.75%	11.97%	-8.33%
FSFG	65 Neutral	$178.65M	9.18	11.31%	2.46%	6.76%	161.37%
FRAF	61 Neutral	$165.22M	14.20	8.16%	3.56%	18.74%	-16.38%
NKSH	60 Neutral	$184.22M	21.24	5.66%	4.89%	16.35%	-39.77%
BCBP	50 Neutral	$157.38M	60.65	1.40%	6.93%	-5.71%	-90.24%

Investar Holding Corporate Events

Investar Holding Announces Merger with Wichita Falls Bancshares

On July 1, 2025, Investar Holding Corporation announced its agreement to merge with Wichita Falls Bancshares, Inc., the holding company for First National Bank in Wichita Falls, Texas. This merger, valued at approximately $83.6 million, is part of Investar’s strategy to expand its geographic footprint in Texas. The merger will result in a combined bank with over $4 billion in assets, enhancing services and lending capacity. Additionally, Investar announced a private placement of $32.5 million in Series A Non-Cumulative Perpetual Convertible Preferred Stock to support the acquisition and for general corporate purposes.

The most recent analyst rating on (ISTR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Shareholders Approve Key Proposals

At the 2025 Annual Meeting of Shareholders held on May 21, 2025, Investar Holding Corporation presented three proposals for a vote. The shareholders elected 11 directors to serve a one-year term, ratified the appointment of Horne LLP as the independent registered public accounting firm for the 2025 fiscal year, and approved the compensation of the company’s named executive officers.

The most recent analyst rating on (ISTR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.